Nifty Bank snaps 5-day win run; support at 48K next week

The Nifty Bank snapped a five-day winning streak on Friday to close in the red tracking muted global cues.

The Nifty Bank fell nearly 300 points to close at 48,201 while the Nifty50 fell 150 points to close above 22,400 level.

PNB, Federal Bank and IDFC First Bank witnessed buying while selling was seen in SBI, ICICI Bank, AU Small Finance Bank and IndusInd Bank.

The Nifty Bank managed to hold on to 48,000 in intraday trade which will now act as a crucial support for the index next week if the selling pressure continues.

"Despite facing selling pressure from higher levels, the BankNifty index managed to defend the crucial support at 48,000,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said.

“The bullish sentiment persists as long as it remains above this level, where significant open interest is concentrated on the put side,” he said.

“Currently, the immediate hurdle lies at 48600, and a decisive breakthrough above this level could pave the way for new all-time highs in the index,” highlighted Shah.

The Nifty Bank opened higher, but it failed to hold the momentum and witnessed selling pressure throughout the trading session. It hit an intraday low of 48,088 before recouping losses towards the close of the trade.

A close below 47,600 could fuel selling pressure while on the upside 48,500-49,000 will act as immediate resistance levels, suggest experts.

“Any trend reversal is only expected if Nifty Bank breaches below 47,600 which is this week’s low. Overall, trend remains positive as Nifty Bank is above its 5 and 21-day moving average on a daily basis,” Bhavik Patel- Senior Research Analyst, Tradebulls Securities, said.

“In the last hour, we saw market range shifting downwards as 48,600 and 48,700 strike prices saw some Calls unwinding indicating in the short term, the market may consolidate at higher levels,” he said.

“48,500-49,000 still continues to remain a hurdle for Nifty Bank this expiry according to option data while 48,000 is the immediate support,” recommended Patel.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)